Here's Why Ascentage Pharma Group International's (HKG:6855) CEO May Not Expect A Pay Rise This Year

Key Insights

• Ascentage Pharma Group International's Annual General Meeting to take place on 10th of May
• Salary of CN¥4.53m is part of CEO Dajun Yang's total remuneration
• The total compensation is 39% less than the average for the industry
• Over the past three years, Ascentage Pharma Group International's EPS fell by 2.3% and over the past three years, the total loss to shareholders 53%

Performance at Ascentage Pharma Group International (HKG:6855) has not been particularly rosy recently and shareholders will likely be holding CEO Dajun Yang and the board accountable for this. At the upcoming AGM on 10th of May, shareholders may have the opportunity to influence management to turn the performance around by voting on resolutions such as executive remuneration and other matters. We think most shareholders will probably pass the CEO compensation, based on what we gathered.

View our latest analysis for Ascentage Pharma Group International

Comparing Ascentage Pharma Group International's CEO Compensation With The Industry

According to our data, Ascentage Pharma Group International has a market capitalization of HK$5.2b, and paid its CEO total annual compensation worth CN¥4.8m over the year to December 2023. Notably, that's an increase of 19% over the year before. We note that the salary portion, which stands at CN¥4.53m constitutes the majority of total compensation received by the CEO.

On comparing similar companies from the Hong Kong Biotechs industry with market caps ranging from HK$3.1b to HK$13b, we found that the median CEO total compensation was CN¥7.8m. Accordingly, Ascentage Pharma Group International pays its CEO under the industry median. What's more, Dajun Yang holds HK$1.4m worth of shares in the company in their own name.

Component	2023	2022	Proportion (2023)
Salary	CN¥4.5m	CN¥3.8m	95%
Other	CN¥253k	CN¥242k	5%
Total Compensation	CN¥4.8m	CN¥4.0m	100%

Talking in terms of the industry, salary represented approximately 48% of total compensation out of all the companies we analyzed, while other remuneration made up 52% of the pie. Ascentage Pharma Group International is paying a higher share of its remuneration through a salary in comparison to the overall industry. If salary dominates total compensation, it suggests that CEO compensation is leaning less towards the variable component, which is usually linked with performance.

A Look at Ascentage Pharma Group International's Growth Numbers

Ascentage Pharma Group International has reduced its earnings per share by 2.3% a year over the last three years. It achieved revenue growth of 5.9% over the last year.

A lack of EPS improvement is not good to see. And the modest revenue growth over 12 months isn't much comfort against the reduced EPS. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Ascentage Pharma Group International Been A Good Investment?

With a total shareholder return of -53% over three years, Ascentage Pharma Group International shareholders would by and large be disappointed. This suggests it would be unwise for the company to pay the CEO too generously.

In Summary...

Along with the business performing poorly, shareholders have suffered with poor share price returns on their investments, suggesting that there's little to no chance of them being in favor of a CEO pay raise. At the upcoming AGM, they can question the management's plans and strategies to turn performance around and reassess their investment thesis in regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. We've identified 1 warning sign for Ascentage Pharma Group International that investors should be aware of in a dynamic business environment.

Of course, you might find a fantastic investment by looking at a different set of stocks. So take a peek at this free list of interesting companies.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.